THE Horsham town hall and art gallery redevelopment will proceed to a full hearing at the Victorian Civil and Administrative Tribunal next month after Horsham Rural City Council and project objectors failed to reach a resolution at mediation.
The two parties met at a session in Melbourne on Wednesday.
Council chief executive Peter Brown said the case would now go to a full hearing on February 13 and 14.
"Discussions focused on car parking, which is the key issue remaining on the table.
"It is disappointing that we were not able to resolve the issue at mediation."
Mr Brown said council would continue to meet with the objectors up until the hearing.
"We might be able to narrow the points of objection," he said.
Mr Brown said council would also compile the results of a fourth survey of parking availability in Horsham's central business district, which was commissioned in response to the objections.
"Preliminary results show that there is sufficient car parking space in the CBD," he said.